TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Saturday, June 8, 2013

IRS Rules Florida Dirt Bonds Are Not Tax-Exempt

Reuters:  IRS Rules Florida Development Bonds Should be Taxable:

The IRS is challenging the tax-free status of municipal bonds issued for infrastructure at The Villages retirees development in Florida, a ruling that may affect hundreds of other sellers of so-called dirt bonds.

In a memorandum [Tech. Adv. Mem. 127670-12 (May 9, 2013)], the U.S. tax agency ruled that securities issued by the Village Center Community Development District north of Orlando was not entitled to sell municipal bonds with tax-free interest payments because the entity created by billionaire developer H. Gary Morse was essentially a private entity.

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Spokesman for The Villages connected to Obama Administration.

Posted by: Woody | Jun 8, 2013 4:09:46 PM